A labor agreement aimed at keeping Vallejo’s general fund from going broke fell apart Monday, prompting top administrators to recommend the city file for bankruptcy protection.

The city faces a $6 million shortfall, with top staff members saying the general fund will run out of money by the end of March. However, Mayor Osby Davis said Monday he will work to try to salvage the accord that city staff members were close to reaching with public safety unions Friday.

But that changed Monday.

City Manager Joe Tanner said that despite the unions working “diligently” to help find a solution, no deal was reached and the city would run out of money by March 31.

Chapter 9 bankruptcy would allow the city temporary protection from creditors while officials devise a plan, subject to court approval, to regain fiscal stability.

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